Monday, February 10, 2025

DIGITAL INFLUENCER | Economic benefits of influencer collaborations in franchising

With so many retailers promoting similar goods online, franchise businesses face the challenge of choosing the most effective marketing strategies to build brand awareness, engage with customers, and drive sales.

One of the most impactful tools at their disposal is social media influencer marketing, a relatively new yet rapidly growing trend that is set to play an increasingly important role in the next decade.

Recently, I had the honor of being invited as a panelist at the prestigious Franchise Asia Philippines 2024 Conference to discuss the evolving landscape of brand endorsements.

The panel, titled “Celebrity Endorsers or Social Media Influencers: Which is Better for Your Brand?”, explored the comparative advantages of celebrities versus influencers in building brand loyalty and driving business growth in the franchising sector. This opportunity allowed me to share insights and engage in a dynamic conversation with industry leaders about the future of influencer marketing.

One of the key points I emphasized during the panel is the importance of building awareness, credibility, and word-of-mouth, particularly for businesses planning to franchise in the future.

When potential franchisees research your brand online — whether through search engines or social media platforms — they form impressions based on what they discover. This is where social media influencers can play a crucial role.

By partnering with influencers who resonate with your target market, you can shape a positive online presence that enhances your brand’s credibility and attractiveness to potential investors.

I recalled a skin clinic in Bonifacio Global City that was planning to franchise. The clinic was competing with well-known establishments in the area, so they strategically tapped social media influencers to try their services and share their experiences through blogs, vlogs, and Instagram posts. Each influencer highlighted their unique skincare journey and their experiences with the clinic.

These authentic stories boosted the clinic’s online visibility resulting in improved website ranking on search engines, eventually leading to its selection for high-end deal sites. This exposure also attracted celebrity influencers who were eager to try the clinic’s services and eventually became brand ambassadors.

During the panel, I also encouraged brands that if they have the budget to contract a celebrity and run a massive media campaign, they should consider the potential of investing in a larger number of social media influencers instead.

By developing unique, engaging, and potentially sales-converting campaigns with influencers, brands can empower a diverse group of content creators. This approach not only democratizes earning opportunities within the influencer sector but also fosters a more genuine and widespread brand presence across multiple platforms and demographics.

Social media influencers have already revolutionized the way brands communicate with consumers, and their influence is only expected to grow. As digital platforms continue to evolve, influencers will become more integrated into the marketing strategies of franchises. This evolution could see influencers promoting products, co-creating them with brands, and offering deeper personalization and resonance with their audiences.

Work with influencers who have built strong personal brands by continuously adapting to new trends and platforms, exemplify how adaptive influencers can help franchises stay ahead of digital trends and maintain relevance in the eyes of tech-savvy consumers.

When deciding between a celebrity and an influencer, franchises should consider factors such as audience alignment, engagement rates, and budget. While celebrities offer broad reach, influencers often provide more targeted engagement with specific demographic groups.

For franchises looking to maximize return on investment (ROI), influencers, particularly micro or niche influencers, can offer more direct and measurable connections with their target customers. For example, Niana Guerrero’s unparalleled engagement with the Gen Z demographic highlights how the targeted reach and cost-effectiveness of an influencer like her may offer a better ROI than a traditional celebrity endorsement.

Despite the growing popularity of influencer marketing, several misconceptions persist, particularly within the franchising sector.

One common misconception is that influencers are only effective for niche or small-scale brands. In reality, even large franchises can benefit from influencer marketing if the influencer’s audience aligns with the franchise’s target market.

Another misconception is that influencer marketing is less reliable than celebrity endorsements. However, with proper vetting and a clear strategy, influencers can be just as reliable, if not more so, due to their close connection with their followers.

To effectively measure the success of an influencer marketing campaign, franchises should focus on key metrics such as engagement rates, conversion rates, and brand sentiment.

Tracking these metrics allows franchises to assess the direct impact of the campaign on sales and customer loyalty.

Influencers excel at building communities because they engage with their audience on a personal level, fostering a sense of connection and loyalty. Unlike traditional celebrities, influencers often interact directly with their followers, making them feel like part of a community rather than just consumers.

However, influencer marketing is not without its risks. To mitigate these risks, franchises should conduct thorough background checks on potential influencers, focusing on their past collaborations, audience demographics, and engagement quality. It’s also crucial to have clear contracts that outline content guidelines and crisis management protocols.

Micro-influencers can be particularly beneficial for franchises because they often have highly engaged, niche audiences. These influencers can create more personalized and authentic content, which can be more impactful than the broader, less targeted reach of larger influencers or celebrities.

Alodia Gosiengfiao, who began as a micro-influencer in the gaming community before expanding her reach, demonstrates how micro-influencers can effectively connect with specific communities, making them valuable partners for franchises looking to tap into niche markets.

During a PR crisis, influencers who are seen as trustworthy and authentic can help franchises manage public perception and communicate their response to the crisis. Influencers can convey the brand’s message in a way that feels more personal and genuine, helping to restore customer trust.

Finally, influencers are often at the forefront of digital trends and cultural shifts, making them valuable partners for franchises looking to stay relevant. By continuously adapting their content to reflect current trends, influencers help franchises remain agile and responsive to changes in the market.

Social media influencers offer franchise businesses a powerful tool for building brand awareness, engaging with customers, and driving sales.

By carefully selecting the right influencers, monitoring key metrics, and staying attuned to digital trends, franchises can leverage influencer marketing to achieve significant and sustainable growth.

The right partnership can make all the difference in connecting with the right audience and achieving business goals.

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